A new website has been launched to help remove borrowers' credit defaults and smooth the loan approval process.
Mycra.com.au has claimed it can help clean up a borrower’s credit file so that they can achieve loan approval, get a lower interest rate or reduce upfront fees often associated with obtaining credit.
Launched just under two months ago, the website’s chief executive officer Graham Doessel said brokers had been drawn to the site’s capabilities.
According to Mr Doessel, 92 per cent of customers have already seen positive results from using mycra’s services and 80 per cent have had all their defaults removed.
“Removing defaults from a customer’s credit file takes approximately one month as it often involves various legal proceedings which have a tendency to chew up time,” he said.
FBAA’s national president Peter White said the initiative was fairly unique to the broker market and would inevitably help a borrower get the best loan possible.
“From what I can tell, mycra.com.au provides a very good service to borrowers and brokers alike. It has not been an easy year for anybody and often borrowers are prevented from getting a loan because of an insignificant default such as a late mobile phone payment,” Mr White told Mortgage Business.
“When a borrower has a default on their record they are unsure as to what they can or cannot achieve. By wiping defaults from their record, it allows them to apply for whatever loan suits their needs the best.”
Easy Finance’s John Simpson told Mortgage Business the website was a good idea as it allowed a broker to understand their client’s true financial history and know what they were working with up front.
“The idea is very lucrative for brokers, because even if my customer’s credit defaults cannot all be removed I at least have their in depth financial history and can advise them of what they can achieve from there,” Mr Simpson said.
Customers using the mycra.com.au services are required to pay a $997 consultation fee, followed by $497 for every default removed.
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